A Chip Stock With 50% Upside

Photronics is gaining market share and improving its business mix.

Chip stocks have hit a rough patch, and Photronics (ticker: PLAB) is no exception.

The Brookfield, Conn., company, valued at just $400 million, makes photomasks, or plates that allow light to shine through in patterns to create miniscule circuits on silicon. Revenues for its fiscal first quarter, which ran through January, declined 11% to $112 million. Shares, which fetched over $9 two years ago, sell for $6.62 today.